Late last year, I released the most powerful tool I’ve ever developed in TradeStops – the Risk Rebalancer. Today, I’m making the Risk Reblancer TradeStops even better.
The inaugural study that launched the Risk Rebalancer covered the investment history of 40 individual investors over a 15-year period. Using the exact same investments, bought and sold at the exact same time these investors could have more than doubled their investment returns by only changing the amount of money invested in each position.
Here is the chart summarizing these results … the chart that started it all:
Remember, the average improvement was a doubling of performance. Some of these investors could have achieved even more dramatic results.
One investor could have done 6 times better – making $136,260 in profits instead of $22,720.
Another investor could have turned a $100,400 loss into a $59,500 gain!
I bring these examples to your attention again to remind us all that there is one killer portfolio mistake that almost every investor makes at one time or another – putting too much money into a really exciting (and volatile) story stock.
The Risk Rebalancer is a tool that I developed so that investors can know exactly the right amount of money to invest in each stock. I call this “right-sizing” your portfolio. It automatically calculates how much money to invest in each stock so that your portfolio is balanced for volatility.
Since we introduced the Risk Rebalancer in 2015, thousands of new investors have signed up as TradeStops Premium members.
Here’s a recent comment from a TradeStops customer about the difference the Risk Rebalancer is already making on the way he invests…
I added some money to my IRA a little while ago. I risk rebalanced only for 3 stocks with it instead of resizing the whole portfolio…. Then, on 7/21, I randomly risk rebalanced the entire portfolio but didn’t make any changes. If I had followed the program and resized (by adding more to some of my risky positions and less to some of the seemingly solid ones) I’d literally be up 24% more in that Portfolio…. I’m blown away by how much this program has already helped me.
-James R., Maine
Today I am pleased to announce that we have just released the first major upgrades to this powerful tool. The best just got better.
If you’re a Premium or Lifetime subscriber to TradeStops, you can login right now to get access to these new improvements. If you’re not yet a Premium subscriber, what are you waiting for?
- See what adding a new position would do to the portfolio;
- Freeze a favorite existing position so that its position size doesn’t get rebalanced;
- Automatically reallocate capital out of all of your stopped out positions into the remaining stocks in your portfolio;
- Easily see exactly the steps you need to take to achieve the rebalancing;
- And more.
Seriously, there is nothing like it that I’ve ever come across in my 20 years of investing … and we just put even more distance between ourselves and the (non-existent) competition.
By the way, we’re not done. We continue to work on upgrading the tools within TradeStops and will have more releases in the coming months.
Make more, Risk less,
Richard M. Smith, PhD
CEO & Founder, TradeStops